BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI went nowhere overnight with mild buying support to keep it near the 1,520 support level.
For the most part, however, the market was directionless due to lack of leads with stocks mostly on a drifting mode.
At the same time, market breadth remained negative as many of the lower liners and broader market shares, particularly construction stocks, succumbed to profit taking activities. Meanwhile, market participation remained at the low levels.
The market is still very much on a wait-and-see stance with the lack of direction causing most market players to stay on the sidelines.
Consequently, the sideway trend looks to continue for the time being as fresh buying interest looks to remain on a low gear for now.
New leads are also still far-and in-between to draw more market players and there will only be nibbling on selected stocks which will be insufficient to provide the much needed lift.
Meanwhile, the ongoing results reporting season has yet to provide many outperformances and is unlikely to provide significant catalyst to the market’s near-term performance.
As such, the key index is likely to stay range-bound within the 1,520 and 1,530 levels for the time being. The other support and resistance levels are at 1,515 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI ended marginally higher after erasing most of its gains in the final trading hour, underpinned by renewed buying interest in the index-linked telecommunication stocks which offset selling pressure in gloves.
Tracking the slightly bullish tone on Wall Street overnight, we expect buying support to spill-over to stocks on the local bourse, especially technology stocks as Nasdaq closed near the all-time-high region.
Commodities-wise, crude palm oil (CPO) price is hovering around RM4,800 level while crude oil price continued to trade above the US$82 per barrel mark.
Crude oil price is likely to trade in consolidation mode as the OPEC chief has noticed signs of oil surplus in the near term.
The FBM KLCI booked marginal gains as the key index closed above its immediate support level at 1,520. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI is still hovering below 50.
The key index may continue to trade in range-bound mode between the support level at 1,520 and the resistance along 1,540-1,550 without any fresh catalyst. – Nov 17, 2021
